Galantas Gold soars on news of Irish mine expansion

Shares in Galantas Gold (TSX, LON:GAL) were up almost 17% Tuesday morning in Toronto and 2.3% in London as the Canadian company announced it had begun underground development at its Omagh gold mine in Northern Ireland.

The firm, which has been planning the extension since 2014, said late Monday that it had begun building a portal in the western sidewall at the base of the existing Kearney open pit. It added it expected to reach the ore zones below the crown pillar within six months.

After acquiring new equipment last year, Galantas is going underground at Omagh.

Investors welcomed the news and Galantas’ shares were trading 16.67% up in Toronto to Cdn 1.4 cents at 9:51 am ET and 2.4% up to 7.8p in London at 11:33am GMT.

"This is an important milestone in the development of the Omagh underground gold mine,” chief executive Roland Phelps said in the statement.

“We are pressing ahead with mine development, in accordance with our planning permission […]. So far, we have boosted our local workforce to 17, including some former colleagues, who were previously laid off during planning delays,” Phelps said.

Galantas is not the only Canadian miner in Ireland. Toronto-based Dalradian Resources (TSX:DNA) has been working on its proposed gold project in Tyrone since early 2010 and it already has the mineral rights to more than 80,000 hectares in Northern Ireland. This includes the company’s flagship Curraghinalt gold project outside Gortin, identified as one of the top ten undeveloped gold deposits by grade in the world.